New home Mortgage and refinancing?

Question by sooners83: New home Mortgage and refinancing?
My builder will pay my 5K or so closing costs if I use their mortgage company. Well, come to find out (6th months ago is why I got my first quote) the company is charging a pretty high interest rate.

Since they are paying my closing costs if I use them, could I refinance the house, let say in 6 months to a year, to another better company?

Best answer:

Answer by Landlord
Read the loan docs, but I am betting that it has a hefty pre-payment penalty if you refi within 2 years.

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3 Responses to New home Mortgage and refinancing?

  1. Gregorio says:

    Just get a better rate to begin with and compare closing costs. Get a few free quotes and you may be surprised to find a much better deal waitng out there.

    PS, if you just plan on refinancing in 6 months to get a better rate, you will have to pay closing costs anyway, so what are you saving? Get it right the first time. Shop around.

  2. Christiane says:

    Do not plan on refinancing in 6 months it ill end up costing you more..get the lowest rate from the start and negotiate the closing costs. Most builders are offering lots of extras to get rid of their inventory…they should pay all the closing costs anyway, plus!

  3. !!! says:

    be careful of any “prepayment penalty” language in the mortgage paperwork.

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